What is Debit note and Credit
note? What is the purpose? How we create?

1. A transaction that reduces Amounts
Receivable from a customer is a credit memo. For e.g.. The customer could
return damaged goods. A debit memo is a transaction that reduces
Amounts Payable to a vendor because, you send damaged goods back
to your vendor.

2. Credit memo request is a sales
document used in complaints processing to request a credit memo for a customer.
If the price calculated for the customer is too high, for example, because
the wrong scale prices were used or a discount was forgotten, you can create
a credit memo request. The credit memo request is blocked for further processing
so that it can be checked. If the request is approved, you can remove the
block. The system uses the credit memo request to create a credit memo.

You can use credit memos in Sales
and Distribution (SD) for assigning credit memo
requests to the open invoices and in Financial Accounting (FI) for assigning
credit memos and payments to the open invoices and carry out clearing with
them. If you use both Financial
Accounting (FI) and Sales and Distribution (SD),
there is a 1:1 relationship between the credit memo request and the credit
memo item posted in Financial Accounting (FI). As soon as you bill the
credit memo request together with other sales
orders, or distribute the items of one credit
memo request to several billing documents, the assignment is no longer
valid and the system will not process it.

For credit memos, credit memo
requests, and payments, you have the following assignment options:- Assignment to a single invoice- Assignment of a partial amount
to an invoice- Assignment to several invoices

When you post credit memos,
the payment programme processes them automatically. If the credit memo
is specifically related to a particular open invoice item, the payment
program automatically attempts to offset the credit memo against the open
item. If it is not possible to completely offset the credit memo against
an invoice, you can post a debit memo to the vendor, who is to reimburse
the amount. Then you can apply a multilevel dunning program.

3. Debit memo request is a
sales document used in complaints processing to request a debit memo for
a customer. If the prices calculated for the customer were too low, for
example, calculated with the wrong scaled prices, you can create a debit
memo request. The debit memo request can be blocked so that it can be checked.
When it has been approved, you can remove the block. It is like a
standard order. The system uses the debit memo request to create a debit
memo.

4. As mentioned above, creating
a credit or debit memo request enables you to create credit or debit memos
based on a complaint. For this first create a sales document with the order
type for a credit or debit memo request. You can create the debit
or credit memo requests in the following ways: – Without reference to an order– With reference to an existing
orderHere you enter which order the
complaint refers to. – With reference to an invoiceHere you enter which invoice the
complaint refers to.In all cases, you specify the value
or quantity that should be in the credit or debit memo

5. You can block the credit or debit
memo request from being billed in Customizing. Go to Sales -> Sales
Documents -> Sales document header -> Define sales document type and select
the billing block field in the billing section. This request can
later be reviewed along with similar ones, - if necessary, by another department.
The request for a credit or debit memo can then be approved or rejected.